Playing as Bandana Dee, the player must defeat a team consisting of Meta Knight and Black Mage while teamed up with Kirby on Dream Land. If the player or Kirby is defeated, the player will fail the event, so they also must ensure that the latter does not get KO'd during the event. All fighters each have 1 stock, and the launch rate for both opponents is set to 1.2 so they take more knockback from attacks.
The ranking the player receives is based on how much time the event takes to be completed. The specific conditions for this are listed below.
When first incorporated into the game, this event was listed as #8, incorrectly named Nightmare in Dreamland, and it allowed the player to choose their character, as opposed to strictly using Bandana Dee.
The preview image of this event was changed twice over the development of SSF2. It was first changed in Beta 1.2 due to Kirby receiving new costumes and sprites, and it was changed again in Beta 1.2.4 due to the costume used for Kirby changing.